Final Repair and Maintenance Regulations Are Issued

Last year, Baker Newman Noyes Tax Principal Andy Smith informed us of some very significant new tax rules that impact whether certain outlays to acquire, maintain or improve tangible property will be deductible in the year incurred or subject to depreciation over the tax life of the acquired asset. Those articles can be found here and here.

As is often the case with complex and wide-reaching law changes, the Treasury Regulations that make up these rules were issued in temporary form, and clarifications followed. Last Friday, the “temporary” status of the rules was removed, some more changes were made, and the Regulations were issued in final form. Here is an article penned by tax experts at Baker Tilly Virchow Krause that will be of use to our readers who are interested in the outcome of these rules.

These regulations represent some of the biggest changes we have seen in recent tax laws, and they offer some unique planning opportunities that can greatly accelerate tax deductions for taxpayers who incur costs to acquire, maintain or improve property. We encourage you to become familiar with them. If you have any questions, please contact your Baker Newman Noyes tax professional or Andy Smith.

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